Save Your Dream House With A Home Refinance Stimulus Package
You can save your dream home with the home refinance stimulus package introduced by President Barack Obama. The objective of this package is to save homeowners from awkward situations like foreclosure and bankruptcy. The federal government has moved forward with loan modification programs and home refinance programs to assist all the distressed homeowners to prevent foreclosure. The home refinance stimulus package is tailored for every borrower who is undergoing financial adversities since they are not in a position to pay off their loans. The home refinance stimulus package would address as many as 9 million mortgages and the federal government would be outlaying $75 billion to support the homeowners.
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The Stimulus Package of President Obama has two principal constituents:
1) Refinance
2) Loan modification
Following are some details about each of these constituents:
Mortgage Refinance
Under this program, the two most important government mortgage lenders, Freddie Mac and Fannie Mae would be refinancing the mortgages of all the borrowers whose home values are upside down. The only stipulation for this program is that the mortgage has to be backed by Freddie Mac and Fannie Mae. Therefore, even though you have the capacity to make the whole additional amount, you can still benefit from the program.
However, there is one important clause associated with home refinance programs and that is: only residential property owners can avail this offer. Any vacant property or unoccupied building would not be eligible for the stimulus package.
Loan Modification
There have been attractive bonuses that would be offered by the federal government to all the lenders undertaking loan modification programs on the existing mortgage loans of their borrowers. As per this program, the homeowners can get rid of the risk of foreclosure. The prominent aspects of this program are: reduction of interest rates to as little as 2%, extension of repayment terms in order to lower monthly payments and elimination of late fees. Through loan modification, the lender would also look after the overall monthly payments made by the borrower and ensure that it does not go over 31% of his gross monthly income.
